Health Network Presses Case For Single License

State Hears Both Sides Of Plan For Two Hospitals

September 11, 1998|By ANDREA COMER; Courant Staff Writer

VERNON — Both sides predicted doom if a decision was not made in their favor.

Armed with their arsenal of backers, officials from Eastern Connecticut Health Network and the town faced off Thursday in the Legislative Office Building in Hartford. For nearly five hours, about 75 officials, residents and hospital employees listened to and debated reasons for granting the health network one license for its two hospitals.

The health network was hoping to convince the state Office of Health Care Access that a single license to operate Manchester Memorial and Rockville General hospitals was crucial to each institution's survival.

Vernon Mayor Joseph Grabinski and several councilmen tried to explain their contention that a single license would hurt the Rockville section of Vernon.

The health network had said the merger is necessary to keep the two hospitals financially viable. But, as health care access staff pointed out, the network had little data to support that contention.

Health network officials admitted during the public hearing that only about $120,000 in savings had been documented -- the cost of licensing dues and audit services.

Many of the state agency's questions, such as the exact term of the long range plan, could not be answered definitively. Health network officials also were initially unclear on whether their application referred to two hospitals or one entity. They ultimately told the state agency that the application reffered to one legal entity with two campuses.

Robert Gorman, commissioner of the Office of Health Care Access, said the agency is expected to make a decision on the application within two to three weeks.

Much of the hearing involved testimony from both sides. Grabinski questioned the health network's ability to handle the task of a complex merger.

``To grant a single license to ECHN would in fact be placing the fate of Rockville General Hospital and Manchester Memorial Hospital into the hands of a group that has no experience in running what will become a large health-care business,'' Grabinski said.

``I say they are inexperienced because the health- care industry has been changing so rapidly that no administrator can say that his experience amounts to more than just reacting to change.''

Grabinski also took aim at Marc Lory, the network's president and chief executive officer, who began his job three days ago. Grabinski said Lory has overseen many mergers in his professional career, ``but has he been in a position long enough to see the result of those mergers?''

Lory said the health network is committed to taking into consideration the community when making decisions about the two hospitals. He added that part of making the institutions work in the communities they serve is ensuring that they are financially able to provide the best services.

``If there is no margin, there is no mission,'' Lory said. ``The only way to increase margins is to reduce overhead expenses.''

State Rep. Pamela Sawyer, whose 55th House District covers part of Vernon, said the health network's past performance in communicating with the community has hurt them in this venture.

``The unfortunate past history . . . has set a pattern of fear and also some mistrust,'' Sawyer said, pointing out that many of the network's plans were revealed in news accounts. ``I believe that [the merger] is being done prematurely. This is a community that is very proud and is struggling to build itself up.''

State Rep. Thomasina Clemons of the 56th House District, and her Republican opponent Jason McCoy, also spoke in oppostion of the merger, citing Rockville residents' concerns for the future of the hospital.

But one supporter of the merger suggested that Vernon officials were simply making a political issue out of the health network's proposal. Ruth Kaitis, a health network employee, said a merger was the only way the hospitals could withstand the changing health care climate.

``If someone else has a better solution, please tell us,'' Kaitis said. ``If not, it's time to stop the criticism and allow this merger to go forward. Ideas are a dime a dozen. People who put those ideas into action are priceless.''

Gorman said that although many of the agency's questions were not definitively answered, network officials would not be able to provide supplemental information to their application.

``The hearing is closed,'' Gorman said. ``By law, we can only make a decision based on the information provided during the hearing.''